Physical layers of communication systems using Filter Bank Multicarrier (FBMC) as a modulation scheme provide low out-ofband\r\nleakage but suffer from the large Peak-to-Average Power Ratio (PAPR) of the transmitted signal. Two special FBMC schemes\r\nare investigated in this paper: the Orthogonal Frequency Division Multiplexing (OFDM) and the Staggered Multitone (SMT). To\r\nreduce the PAPR of the signal, time domain clipping is applied in both schemes. If the clipping is not compensated, the system\r\nperformance is severely affected. To avoid this degradation, an iterative noise cancelation technique, Bussgang Noise Cancelation\r\n(BNC), is applied in the receiver. It is shown that clipping can be a good means for reducing the PAPR, especially for the SMT\r\nscheme. A novel modified BNC receiver is presented for SMT. It is shown how this technique can be implemented in real-life\r\napplications where special requirements must be met regarding the spectral characteristics of the transmitted signa
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